For brokers: Is it possible to offset claims?
According to information that is currently available to the Trustee in Bankruptcy, insurance brokers collected the premiums of the policyholders. The insurance premiums represent part of the bankruptcy assets, and are consequently available to the bankrupt company for equal distribution amongst the creditors. Insurance brokers are not entitled to retain these assets, or to offset these against their own claims, or even to use these assets to settle claims. Insurance brokers are required to present statements of account, and must arrange for the assets to be returned to the bankrupt company.